The Economics That Made Boeing Build the 737 Max

The infamous 737 Max is now grounded and considered a liability, but this was not always the case. What made Boeing design this particular airplane? Wendover Production explains the economics behind this ill-fated airplane in this video. Part of the reason is that airlines would rather have a cheap small plane than an expensive super efficient small plane. The 737 is just that: a cheap small plane. Priced at just $89 million, the now doomed plane was considered a great deal. This is because Boeing had perfected the 737 manufacturing process…

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Why the world is due a revolution in economics education

Economic thinking governs much of our world. But the discipline’s teaching is stuck in the past. Centred around antiquated 19th-century models built on Newtonian physics, economics treats humans as atomic particles, rather than as social beings. While academic research often manages to transcend this simplicity, undergraduate education does not – and the influence of these simplified ideas is carried by graduates as they go on to work in politics, media, business and the civil service. Economists such as myself tend to speak in tightly coded jargon and mathematical models. We speak of “economic…

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The economics of the “Avengers” universe

The cast and crew of “Avengers: Infinity War” attend the Los Angeles premiere.    – Jesse Grant/Getty Images for Disney This post contains spoilers for “Avengers: Infinity War.” What would happen to the economy if half the population suddenly disappeared? Thanos — a space warlord who’s the main villain in the crossover Marvel film “Avengers: Infinity War” —  decides to eliminate 50% of all living beings at random, in a single snap. He spends the movie acquiring infinity stones, which grant him the ability to manipulate reality and carry out his goal.…

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The End of Economics?

In 1998, as the Asian financial crisis was ravaging what had been some of the fastest-growing economies in the world, the New Yorker ran an article describing the international rescue efforts. It profiled the super-diplomat of the day, a big-idea man the Economist had recently likened to Henry Kissinger. The New Yorker went further, noting that when he arrived in Japan in June, this American official was treated “as if he were General [Douglas] MacArthur.” In retrospect, such reverence seems surprising, given that the man in question, Larry Summers, was a disheveled, somewhat awkward nerd then…

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Modern economics needs to be based on Gandhian model of economics, says former vice-chancellor of Gujarat University at SPPU

Revisiting Mahatma Gandhi’s words which say that‘Economics is untrue which ignores or disregards moral values’, Prof Sudarshan Iyengar, former vice-chancellor of Gujarat University asserted that modern economics needs to be based on the Gandhian model of economics. He was speaking at a colloquium programme organised by the Savitribai Phule Pune University on Friday at the university campus. Iyengar said, “Modern economics teaches us to maximise the use with minimum resources. However, Mahatma Gandhi urged everyone to limit the wants. In modern economics, the biggest mistake that modern economic science has…

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Do Women Avoid Economics…Or Does Economics Avoid Women?

A recent New York Times piece highlighted the problems women continue to face in the economics profession. The article in question discusses the harassment experienced by female economists and touches on several related issues like the low number of women PhD economists (especially at senior ranks). This is hardly news to any of us in the dismal science. There have long been articles, both in the popular press and academia, about the underrepresentation of women and the challenges they face. Recently there was a particularly upsetting piece on the horrific language used by budding PhDs to describe their…

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